However, since I said that (and I think it was 3 bln from Warren, not 2), they just got an 18 bln dollar payoff from NBCuniversal.....that's a game changer. Hope Immeltdown doesn't blow it on junk.
GE's expansion plans are really dependent on the performance of their financial unit....which drained them big time during the crash which is why they got 2 bln from Warren....at 10%. That's hard money. They DID at least for a time there consider dumping appliances and lighting but the people who were holding off during the crash are coming back into the market. They WERE chasing the OLEDS side of the game but the basic need to replace tungsten in all its brightness per unit volume still points to bright, efficient chips that can stand a high junction termperature.......bye bye OLEDS for that job.
It WOULD be an ideal partnership...since GE has a rack in every hillbilly henhouse throughout the Ameicas. GE has latched on to a very creative ad agency that would certainly make CREE a household name (instead of the big secret it is now). I tried to email CREE with suggestions of "everyone should have at least one CREE" and to fix those amateurish videos on YouTube with the annoying un-gated audio compression., but not even a peep back. An entity like GE with its present ad agency could propel CREE into a consumer frenzy.
GE certainly has the financial and marketing/distribution strength to grow their LED biz, I just don't think they see that biz as the biggest bang for their bucks. I think the new and improved GE wants to focus more on higher margin industrial vs consumer businesses. I would not be surprised to see GE divest their lighting division - the problem is who would buy it? Perhaps they may decide to spin it off just like SI is doing with Osram.
How are you today? Still hurting from the recent runup it sounds like.
Long time investor and trader in CREE here.
IMO GE with NEVER buy CREE. Or it would have picked up CREE long ago.
Infact GE is looking more and more like it might sell it's lighting business. Because it isn't really participating in R&D or sniffing around to aquire companies (like CREE) with newer technologies.
Actually a year ago I believe I read an article about GE wanting to get out of lighting and appliances I believe.
So while I prefer to NOT agree with a short, I'm with you on this one - no buyout from GE.
But CREE's future is bright anyways.